Uniswap Price Analysis: UNI Springboards Toward $20 Following the Colossal Dip
- Uniswap leads crypto recovery after rebounding from support at $14.
- Vivid bullish signals on the four-hour chart affirm the uptrend's ability to step above $20.
- A robust resistance around $18 could jeopardize the anticipated upswing.
Uniswap, like many crypto assets in the market, fell victim to the solid bearish gusts of winds causing havoc to investor holdings. The decentralized finance (Defi) token tumbled under $20 and stretched the bearish leg to support at $14. This buyer congestion zone was key to the uptrend that resumed after the crash in May.
As the token stabilized at the support level, more buyers streamed into the market, taking advantage of the lower price. Most investors believe that this was the last stroke of the bearish cycle and that the crypto market is gearing up for another rally heading toward the end of the year.
Uniswap price builds momentum for the ultimate swing to $30
Uniswap trades at $18 at the time of writing. Buyers stamped their feet down in the wake of the losses to $14. If the hurdle at $18 is pulled into the rearview, Uniswap will sustain price action above $20 and aim for $30.
The Moving Average Convergence Divergence (MACD) indicator on the four-hour chart gradually comes out of the dip. Keep in mind that this technical tool follows the asset's trend and measures its momentum.
Although the MACD is rarely used to identify overbought and oversold conditions, traders use it to spot positions to buy the dip or sell the bottom. As the MACD line (blue) crossed above the signal line, a call to buy flashes. On the other hand, the trend flips bearish when the MACD line moves under the signal line.
According to Uniswap's chart, the uptrend is intact. The short-term technical picture appears bullish based on the MACD. Furthermore, the Relative Strength Index's (RSI) upward motion shows that buyers have the upper hand. Their aggressiveness is bound to continue when the RSI steps above the midline and extends toward the overbought area.
UNI/USD four-hour chart
Looking at the other side of the fence
The In/Out of the Money Around Price (IOMAP) on-chain model, developed by IntoTheBlock, reveals that Uniswap's uptrend will be challenged in the region extending from $18.8 to $19.4. Here, 1,350 addresses previously bought around 124 million UNI. This is a robust seller congestion zone likely to delay the recovery above $20.
Uniswap IOMAP model
On the downside, the presence of weak support levels casts doubt on the uptrend's ability to remain intact in the coming sessions. With resistance between $18.8 and $19.4 becoming apparent, overhead pressure could surge. Hence, putting pressure on the vulnerable support levels highlighted by the model.